BoE Expected to Hold Rates Amid Aggressive Market Pricing

Expectations are high that the Bank of England (BoE) will maintain its current interest rate at Thursday's meeting, despite aggressive market pricing indicating a possible hike.

The BoE's Decision Maker Panel shows that firms' year-ahead own-price inflation expectations stood at 3.8% in the three months to August and are trending down, although they are still a little higher than before the Iran war.

Governor Bailey dismissed the aggressive market pricing as reflecting a large risk premium and maintained his wait-and-see stance despite the deterioration in energy markets.